CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Option Year #2 to Sole Source Procurement 21-094.2, Leaf Disposal Services, to BioAg, and Option Year #1 to Contract 22-126.1, Leaf Disposal Services, to Creekside Compost LLC and Steve Piper and Sons, for a combined amount not to exceed $350,000
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director of Public Works
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Department of Public Works (DPW) manages the City’s annual Bulk Curbside Leaf Collection Program and provides two leaf collection options:
1. Free bagged leaf program from the end of October through mid-December
2. Bulk curbside leaf collection which provides residents with three opportunities over six weeks to rake leaves to the curb for pickup and disposal by DPW
The Bulk Curbside Leaf Collection Program is intended to augment, not replace, the bagged program and enhance leaf removal options for the community. It begins six weeks before Thanksgiving and ends after the third and final pickup is complete, or when winter weather prevents DPW from picking up leaves.
DPW annually collects between 50,000 and 60,000 cubic yards of leaves during the six-week program depending on weather and early leaf drop. The collected leaves must be disposed of in an environmentally appropriate way compliant with Illinois EPA regulations.
DPW currently uses the following two disposal methods for leaves:
1. Leaf Disposal on Local Farm Fields
Historically, a portion of the leaves picked up by City crews has been hauled to designated local farmland where a contracted third-party spreads, treats and tills the leaves into the farm fields. However, the availability of local farm fields has become scarcer over the years. The City Council approved the award of Contract 21-094, Leaf Disposal Services, to BioAg, Inc. on April 7, 2021, for a two-year contract term and authorized the City Manager to enter into a two-year lease agreement for the disposal of leaves on three City-owned parcels. The term of the agreement was May 1, 2021, through April 30, 2023, with three additional option years available. The first option year was awarded on April 18, 2023, along with the extension of the lease agreement.
2. Leaf Disposal Outside of the Area
The City Council approved the award of Contract 22-126, Leaf Disposal, to Creekside Compost, LLC and Steve Piper and Sons on May 3, 2022, for a two-year contract term. The initial term of the contract was from the date of award through December 31, 2023, with three one-year optional renewals.
The purpose of this contract is to provide services including, but not limited to, the disposal of up to 45,000 cubic yards of leaves collected from the City’s curbside leaf collection program. Under this contract, DPW crews deliver collected leaves to designated City-owned properties and contractors take them to their property for composting.
DISCUSSION:
Weather conditions play a significant role in completing fall leaf pickup collection operations. Wet conditions limit the ability of contractors to spread leaves on farmland and snow impedes collection. Additionally, there is always a concern regarding the availability of farmland due to development.
Leaf Disposal on Local Farm Fields (Sole Source Contract 21-094)
To have greater flexibility in the City’s leaf collection and disposal operations, and to ensure all leaves collected are properly disposed of (per the EPA) by Thanksgiving, DPW recommends that the City Council approve the second option year for Sole Source Contract 21-094 for the disposal of leaves on local farm fields. This will supplement the existing contract for leaf disposal outside of the area (Contract 22-126)
BioAg performed well during the initial term of the contract. In 2023, BioAg disposed of approximately 17,000 cubic yards of leaves for the City at $5.00 a yard for the first 10,000 cubic yards and $4.50 per yard for the next 7,000 cubic yards.
Based on the vendor’s performance, DPW recommends extending the contract for the second option year. BioAg has agreed to maintain the rates and terms provided under the current contract and has added an option to assist with hauling leaves if requested.
The term of the second option year is May 1, 2024, through April 30, 2025, with one additional option year available. The agreed-upon unit cost will range from $4.50 to $5 depending on the volume that they receive from the City: $5 per cubic yard for the first 10,000 cubic yards, $4.50 for the next 10,000 cubic yards, and $4 for anything over 20,000 cubic yards. If the City requests that BioAg haul leaves the price will be $6 per cubic yard.
Leaf Disposal Outside of the Area (Contract 22-126)
Creekside Compost LLC and Steve Piper and Sons performed well during the initial contract. In 2023, Steve Piper and Sons disposed of approximately 5,000 cubic yards of leaves at $6.50 per yard and Creekside Compost LLC disposed of 34,729 cubic yards of leaves at $6.25 per yard.
Based on the vendor’s performance, DPW recommends extending the contract for the first option year. Both Steve Piper and Sons and Creekside Compost LLC have agreed to maintain the rates and terms provided for under the current contract. The term of the first option year is from January 1, 2024, through December 31, 2024, with two additional option years remaining.
FISCAL IMPACT:
CIP #: N/A
Leaf disposal services are budgeted in the Refuse and Recycling Service account below. A total of $350,000 has been budgeted to dispose of leaves in 2024. The requested award of $350,000 is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31251100-531311 |
General Fund |
$400,000 |